Government Factoring Companies

The Best Factoring Companies for Government Contracts

Your small business was granted a government contract, you’re thrilled, and you can’t wait to get started. The only problem is that the expenses to complete the job run high, and long payment schedules are putting your company in a bind. That’s where we step in. Accounts receivable factoring for government contracts can get business owners the funds needed to take on contracts, pay bills, and grow all at the same time. Whether your business provides services to local, state, or federal government bodies, you can factor invoices for immediate cash.

It’s no secret that the government is slow to pay. While the jobs are lucrative, many businesses can’t afford to wait extend periods of time to cash out on their invoices. So, why wait, then? Factoring government receivables is the best way for small businesses like yours to get the fast funds to make payroll and undertake new projects.

We partner with many factoring companies that are accustomed to the payment terms of government contracts. You will be partnered with the best of our government contract factoring companies in your industry so you can get the funding you need to take on new projects. We take the work off of your hands so you can get back to what is important.

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We know how to get your business funded. If you’re not sure which funding product is best, we’ll walk you through the options.

What Types of Government Contractors Do We Work With?

From start-ups bidding on their first project to long-established firms, your business can count on us for funding. We understand the complexities involved in working with local, state and federal agencies. We’ll help you secure the capital to weather seasonal slowdowns and periods of fast growth. Here’s a sample of some of the government contractors we work with:

Staffing

IT Services

Military Products

Transportation and Logistics

Security Services

Manufacturers and Suppliers

Benefits of Factoring Government Invoices

Whether you have a staffing, technology, engineering or other type of government contract, we can get you the funding you need. When working on a government contract, it’s tough to cover upfront costs. The demand for supplies, payroll and other overhead expenses can be significant—so make sure that you can cash out on your invoices right away. Invoice factoring provides the steady cash flow you need for any contract. When you factor, you can expect:

Financial support for ongoing and new projects
The ability to offer extended payment terms
Capital to cover overhead expenses
Invest in growth opportunities
Funds to hire more employees
Steady capital to bid on larger contracts
No long term contracts
Peace of mind that comes with a stable source of cash flow

Unlock Confidence in Bidding for Government Contracts with Invoice Factoring

Invoice factoring can be a game-changer for businesses eyeing government contracts. Here’s how:

First, invoice factoring ensures a stable cash flow. When you factor your government receivables, you turn pending invoices into immediate cash. This means you always have the funds to cover payroll, operational expenses, and any unexpected costs that come up.

Second, with a reliable source of working capital, you can confidently extend more favorable payment terms to potential government clients. This can make your bids more attractive and competitive in the bidding process.

Third, having immediate access to cash allows you to take on additional projects without the worry of cash shortages. You can accept new contracts, invest in necessary resources, and handle the increased workload, all without financial stress.

Lastly, don’t miss out on growth opportunities. Invoice factoring for government contractors and suppliers equips your business with the financial agility needed to bid on new contracts, scale operations, and ultimately thrive in the government contracting space.

In a nutshell, invoice factoring provides the financial backbone to support your ambitions, ensuring you can pursue and secure government contracts with absolute confidence.

Factoring Government Receivables

Factoring government receivables involves selling your outstanding invoices to a factoring company to get an advance within 24 hours. The factoring company typically advances 80% – 90% of the invoice. The remaining amount is held in a reserve account until the government pays the invoice. Once payment is received, the factor releases the rest back to your contracting business, minus a small fee for the service.

Approval

Submit your application to the factoring company and get approved within 3-5 days. Once approved, send your invoices to the factor.

Get Paid

Once the factoring company receives your invoices, they will advance you up to 80%-90% within 24-hours. The remaining percentage will be held in a reserve.

Release

Invoices will be paid directly to the factoring company by the government agency. Once the payment has been received, your reserve will be released minus a factoring fee.

Repeat

Repeat steps 2-4 as frequently as you need. Submit government invoices and receive cash in 24 hours.

Government Contract Funding FAQs

Have more questions? Check out our general invoice factoring FAQ page

Q: What if my business has poor credit? What if I’m just starting up?

A: No worries. Government factoring companies look into the credit history of your customers, not your history.

Q. What can my business use the funding for?

A: Any business expense you need. Whether it be payroll, supplies, or technology, government contract factoring companies will provide you with the funds to cover any costs.

Q: What types of government contracts are eligible for factoring?

A: If you have government receivables, we’ll help you start factoring. Factoring works for any project: staffing, IT services, educational services, construction and many others.

Q: How much of an advance can businesses expect from factoring companies?

A: When businesses engage with factoring companies, they can typically expect to receive an advance of around 80% to 90% of the invoice value. The remaining balance is kept in a reserve account. Once the government agency makes the payment, the factoring company releases this reserved amount to the contractor. However, a small fee is deducted for the factoring service before the final amount is disbursed.

85000

Government Contractors in the United States

Having the opportunity to fulfill a government contract can be great for your business, especially if you’re a smaller company or just starting up. While it can be a exciting possibility for growth, establishing the necessary funds to purchase materials and pay workers can be extremely stressful, leading many businesses to turn down the government contract. Invoice factoring gives you the luxury of advanced payments whenever you need them and will allow you to take on government contracts and lead your business to more success in the future.

Give us a call at 216.279.5144

As a driven business owners, you’ve come to the right place. Our marketplace is filled with government contract factoring companies that will help you reach all of your business goals this year. Government contracts are highly competitive and you don’t pass up a fantastic opportunity. Out bid your competitors with the help of accounts receivable factoring.

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Our funding referral services are at no cost to you. YES, we mean it!

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